What happened

Shares of Synchronoss Technologies (NASDAQ:SNCR) are soaring after the company announced that it had restarted discussions with its largest shareholder, Siris Capital, regarding a possible transaction. This comes just a few days after the company terminated talks with Siris, unwilling to negotiate exclusively. As of 12:36 p.m. EDT, the stock was up 32.4%.

So what

When Synchronoss ended talks with Siris, it pointed to interest from other parties and proposals that were attractive compared to the latest offer from Siris as reasons for refusing exclusivity. It didn't take long for Synchronoss to change its mind.

A rising stock chart.

Image source: Getty Images.

Synchronoss and Siris have now entered into an agreement providing a limited period of exclusivity, following discussions between the two parties. Siris has offered improved terms, and the board of directors has determined that pursuing a deal with Siris is now in the best interest of Synchronoss shareholders.

Synchronoss reminded investors that it can't guarantee that it will strike a deal with Siris or any other party, but that it's aiming to maximize shareholder value.

Now what

If refusing to talk initially with Siris exclusively was a negotiation tactic, it seems to have worked. Synchronoss provided no details regarding the improved terms from Siris, but it was apparently enough for the company to change its tune.

Shares of Synchronoss are still down 63% year to date, following the abrupt departure of its CEO and CFO and the decision to restate its financial statements for the past two years. For investors who have held on throughout the year, this is just another twist in an ongoing drama.

Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends Synchronoss Technologies. The Motley Fool has a disclosure policy.